China expects to receive higher volumes of Mexican avocados this season, which startedthis month (November).
So says John Wang, managing director of Chinese importer Lantao, who in partnership with North-American-based supplier Mission Produce, last year launched a joint venture with Chinese greengrocer chain Pagoda to market ripe-and-ready Mexican avocados under the Mr Avocado brand across China.
“There should be very good Mexican avocado volumes going to China,” he tells Fruitnet. “There will be much more volume compared to last season, for two reasons: first, the Mexican crop is bigger than last year; and second, prices are very competitive this season.”
In the 12 months ending 1 October 2017, Mexican avocado volumes to China and Hong Kong fell 45 per cent on the prior-year (2015/2016) period, and were 38 per cent lower than the annual average, at 330 containers, according to Leo Xu, deputy general manager of produce distributor Joy Wing Mau’s import department. This was due to strong demand for a smaller crop of Mexican avocados from the US market, and competition from cheaper Chilean and Peruvian product.
Lantao expects to import around 250 containers (5,000 tonnes) of Mexican avocados into China this season, according to Wang, who reveals that the firm’s retail avocado ripening programme is expanding.
“We are already ripening avocados in 2,800 Pagoda stores across China, and a few more big Chinese supermarkets and some big home delivery fresh companies are coming on board,” he says, adding that their names will be released within the next few months. “We will run a big Mexican avocado promotion in December.”
China’s avocado import trade is increasing year-on-year, and has seen a significant surge in volumes over the last two years since Chile and Peru gained access to the market, says Xu.
New marketing initiatives, promoting avocados’ health attributes, have also contributed to this recent spike in demand.
“The fruit is visible in almost all supermarkets, fruit shops and on-line shops, and it is becoming fashionable among white-collar office workers and younger generations,” Xu says.
This year to September, online retailer JD.com sold more than RMB30m yuan-worth of Mexican avocados from its JD Fresh platform.
“The [sales] growth is tremendous,” says Michael Zhang, JD Fresh avocado category manager. “JD started sales of Mexican avocado in 2014, and our main supply partners are domestic traders, such as Lantao, Yidu, Botao and Supafresh. Our international suppliers includes Mission Produce.”
China’s avocado market is developing quickly, Li Hanqing, chairman of importer Shenzhen Kingship, tells Fruitnet.
Avocados from Mexico, Chile and Peru mainly arrive into the Chinese ports of Shenzhen, Guangzhou and Shanghai, with Shanghai receiving the greatest volume, he explains.
“I think the China market will see a further increase in demand for avocados in the future,” Hanqing says. “To make it happen, ongoing promotion and education are needed. We need to get the consumers to know more about this fruit, its health benefit, and especially all the ways to eat and use it.”
